The following information is from Princeton Company's comparative balance sheets. At December 31 Current Prior Year Year $121,000 $116,000 Common stock, $10 par value Paid-in capital in excess of par Retained earnings 583,000 329,500 350,000 303,500 The company's net income for the current year ended December 31 was $56,000. 1. Complete the T-accounts to calculate the cash received from the sale of its common stock during the current year. Common Stock, $10 Par Beg. bal. End. bal. Paid-in Capital in Excess of Par Beg. bal. End. bal. Cash received 2. Complete the T-account to calculate the cash paid for dividends during the current year.. Retained Earnings Beg. bal. End. bal. 0 A comparative balance sheet and income statement is shown for Cruz, Inc. CRUZ, INC. Comparative Balance Sheets December 31, 2019 2019 2018 Assets Cash $ 73,200 $ 18,300 Accounts receivable, net 31,400 38,800 Inventory 65,700 72,800 Prepaid expenses 4,100 3,300 Total current assets 174,400 133,200 Furniture 82,700 93,500 Accum. depreciation, (12,800) (7,100) Furniture Total assets $244,300 $219,600 Liabilities and Equity Accounts payable $ 11,500 $ 16,200 Wages payable 6,800 3,800 Income taxes payable 1,100 2,100 Total current 19,400 22,100 liabilities Notes payable (long- 22,700 55,700 term) Total liabilities 42,100 77,800 Equity Common stock, $5 par 173,100 134,500 value Retained earnings 29,100 7,300 Total liabilities and $244,300 $219,600 equity CRUZ, INC. Income Statement For Year Ended December 31, 2019 Sales $375,900 Cost of goods 241,900 sold Gross profit 134,000 Operating expenses Depreciation $28,900 expense Other expenses 68,600 97,500 Income before 36,500 taxes Income taxes 13,300 expense Net income $ 23,200 Required: Use the indirect method to prepare the operating activities section of the statement of cash flows. (Amounts to be deducted should be indicated with a minus sign.) Cain Inc. reports net income of $17,200. Its comparative balance sheet shows the following changes: accounts receivable increased $8,200; inventory decreased $10,200; prepaid insurance decreased $3,200; accounts payable increased $5,200 and taxes payable decreased $4,200. Compute cash flows from operations using the indirect method. (Amounts to be deducted should be indicated by a minus sign.) Cash Flows from Operating Activities (Indirect) Adjustments to reconcile net income to net cash provided by operating activities Changes in current assets and liabilities The following information is from Ellerby Company's comparative balance sheets. At December 31 Furniture Accumulated depreciation, Furniture Current Year Prior Year $ 148,500 $ 206,500 (94,200) (116,200) The current year income statement reports depreciation expense on furniture of $23,500. During the year, furniture costing $58,000 was sold for its book value on December 31, Current Year. Complete the general ledger accounts to calculate cash received from the sale of furniture. Furniture Beg. bal. End. bal. Accumulated Depreciation Beg. bal. End. bal. Cost Accumulated depreciation Book value (Cash received)
